David Grimes, of the Estate of Jesse L. Grimes, Petitioner v. Commissioner of Internal Revenue

EASTERBROOK, Circuit Judge.

Jesse and Ressie Grimes executed a joint and mutual will. Each spouse promised that the one surviving the longer would dispose of his or her interests in jointly-held property according to the terms of the will. The parties agree that under Illinois law such a document becomes irrevocable when either spouse dies, but they dispute its tax consequences. The Commissioner of Internal Revenue treated it as a taxable gift of property by the surviving spouse to the beneficiaries, effective on the date it became irrevocable by virtue of Ressie's death; the Tax Court agreed.…